Slides from the webinar Evaluating Your Way to Exceptional Supplier Performance by Intelex's Fraser Dickie

1. Evaluating
Your Way to
Exceptional
Supplier Performance
By: Fraser Dickie, Account Executive

2. Agenda:
1. About Intelex
2. Supplier Performance Management
3. Methods of Rating Suppliers
4. Conclusion

3. We develop, implement and support software for:
• Quality Management
• Environmental, Health and Safety Management
• General Business Management

4. We were established in 1992

5. We have a worldwide client base

6. We have over 180 employees

7. Our software powers over 700 global customers and
over 500,000 users

8. We have clients
across all industries

10. …well that’s enough
about us.
Let’s talk about…

11. Supplier
Performance
Management
This is what you need to know

12. 1 Selecting Key Suppliers
2 Who Should Evaluate These Suppliers
3 Which Key Performance Indicators (KPIs) to track

13. 1
Selecting Your
Suppliers
This is what you need to know

14. Who are you having the
most issues with?

15. Who are you spending the
most money with?

16. Who are those 20% that have
the biggest impact on
your supply chain?

17. Identifying High
Impact Suppliers

18. “What would the
impact be on my
business if this
supplier delivered late
or supplied low quality
product?”

19. Would this cost me money?

20. What would be the impact of
poor product quality or if
they had a nonconformance?

21. Would this damage
my reputation?

22. Could I face fines?

23. Would I lose customers?

24. What would the impact
be on my business?

25. 2
Who Should
Evaluate Suppliers?

26. “Anyone who interacts
directly with the
supplier should have
the opportunity to
provide input on the
supplier score.”

27. In many cases this may include:
• Purchasing
• Quality
• Production

28. 3
Which KPIs
To Track?

29. Popular KPI’s for
performance management:
3CQL – Cost, Capacity,
Capability, Quality, Logistics
Service
Compliance
Safety
Financials
Information Protection

30. If you use cost as a KPI,
you might want to know:
• Are they offering the lowest cost?
• Have they given us reduced shipping costs?
• Do we have the best payment terms?
• What process improvements are they offering?
• Are we getting bulk discounts on packaging?

31. If you use delivery as a KPI,
you might want to know:
• Do their products arrive on time?
• What is the lead time?
• Do they adhere to lead times requested?
• Do they have shortages when they arrive
with their product?
• Do they adhere to shipping requirements?

32. If you use service as a KPI,
you might want to know:
•Are they friendly to work with?
•Do they provide excellent technical support?
•Do they resolve discrepancies quickly?
•Do they respond to emergencies effectively?
•Do you know your main point of contact?

33. If you use quality as a KPI,
you might want to know:
• Do they frequently have product defects?
• Do they exceed specifications?
• Do they have nonconformances?
• Do they act on nonconformances?
• Do they conform to quality standards?

34. How to capture
this information?

35. Supplier Surveys
May seem easy but there are accuracy
issues with this approach and it relies
on suppliers providing the information

36. System Metrics
Some of this data (cost, delivery
times, service expectations, defects)
may already exist in your
ERP, Financial or HR software
systems

37. Performance Management
Software
The most efficient system, and it can
leverage your existing system metrics

38. Supplier
Scoring

39. Impact based on type
Minor (near miss)
Major (shut down line)
Critical (safety/high cost)

40. Cost of poor quality
Internal cost of issue
Overtime, late delivery fines
Charge backs to supplier

41. Responsiveness
Containment
Time to respond to issue

42. Effectiveness of
Corrective Action
Risk assessment
Likelihood vs. consequences
of this happening again

43. How to Use
Performance Info?

44. Supplier Management Software
Intelex Supplier Management System
•Corporate wide data rollup
•100% web based
•Supplier portal
Evaluation Methods
•Supplier surveys
•ERP integrations
•Supplier NCR & CAPA
Utilizing Supplier Performance Info
•Supplier scorecards
•Supplier dashboards and portal

45. Thank You
Fraser Dickie
Intelex Technologies Inc.
Visit www.intelex.com for a free trial